Ramaphosa caves to Cosatu, signs national minimum wage bill into law

The laws are expected to benefit the over 6 million workers that currently earn below R3,500 a month.

President Cyril Ramaphosa during his address on an economic stimulus plan, 21 September 2018, Union Buildings, Pretoria. Picture: Jacques Nelles

Earlier today, president Cyril Ramaphosa signed four bills into law including the national minimum wage bill following months of pressure from union federation Cosatu.

Times Live reports that the four bills that were signed into law include the Minimum Wage Bill, the Labour Laws Amendment Bill, the Labour Relations Amendment Bill, and some amendments to the Basic Conditions of Employment Act, which will allow for things such as parental and adoption leave.

The bills will come into effect on January 1, 2019, and are expected to benefit the over 6-million workers that currently earn below R3,500 a month.

The legislation will see a R20 compulsory hourly rate, which will be phased in at R18 an hour for farmworkers and R15 an hour for domestic workers.

ALSO READ: Minimum wage: a burden or lifeline for the economy?

Ramaphosa’s office, in an official statement released earlier, said: “The president appreciates the importance of this legislation to the protection of low-earning workers; the speedy and peaceful resolution of workplace disputes; the regulation of public and private funding of political parties as part of a vibrant democracy; the enhancement of the powers of the auditor-general to pursue consequences for poor audit outcomes, and to enhance the rights of people who live on land they do not own.”

“This will be a major cash injection into workers’ pockets,” said Cosatu back in August when they thanked Ramaphosa for his “unflinching support” for the measure that will introduce a minimum wage of R20 an hour.

Employers who fail to comply with the wage will be fined unless they applied for and qualified for exemptions.

Critics of the bill on the left have said it does not constitute a sustainable living wage while those on the right have said it would only hamper the economic climate further. It was initially meant to take effect in May.

For more news your way, download The Citizen’s app for iOS and Android.